Stuck in a medical emergency? A personal loan can help

Posted on Tuesday, November 28th, 2023 | By IndusInd Bank

Medical emergencies are unpredictable and can strike at any time. They may lead to physical and emotional distress, as well as a significant financial burden. As healthcare costs are rising steadily, preparation is key to ensuring that you can tackle medical emergencies efficiently.

While health insurance can provide a safety net, it may not cover all immediate expenses. In such cases, a personal loan can bridge the financial gap and ensure timely medical treatment. Let us explore the concept of personal loans in the context of medical emergencies.

What is a personal loan?

• A personal loan is an unsecured loan provided by financial institutions like banks and Non-Banking Financial Companies (NBFCs).
• Unlike secured loans such as home loans or auto loans, a personal loan does not require any collateral.
• You receive a fixed amount that you have to repay in equated monthly instalments (EMIs) over a specified period.

Features of a personal loan

• Unsecured nature: These loans are unsecured, meaning you do not need to pledge any assets as security. This makes them accessible to a wide range of individuals who may not have valuable assets to offer as security.
  
  
• Quick disbursal: In the case of medical emergencies, time is of the essence. Personal loans are known for their quick approval and disbursal process, which ensures that funds are made available to you within a relatively short period.
  
  
• Flexible usage: A personal loan comes with unrestricted end-use. You have the flexibility to use personal loan funds for various purposes, including hospital bills, medical procedures, medications and other related expenses. This makes them a suitable choice for tackling medical emergencies.
  
  
• Fixed interest rates: A personal loan usually comes with fixed interest rates. This means that the EMI amount remains constant throughout the repayment tenure. This predictability helps you plan your finances effectively. However, any change in the rates by RBI may affect your personal loan interest rates.
  
  
• Tenure options: Lenders offer a range of tenure options for a personal loan. You can choose a tenure that aligns with your repayment capacity. Shorter tenures may have higher EMIs but lower overall interest costs while longer tenures result in lower EMIs but higher interest expenses.
  
  
• Minimal documentation: The documentation process for a personal loan is relatively straightforward compared to other types of loans. This is beneficial during emergencies when time is limited.
  
  To add to the convenience, an IndusInd Bank Personal Loan has a 100% digital and paperless application process. With quick processing and disbursal, the bank provides instant personal loans that ensure you do not have to wait long to arrange funds for meeting emergency medical expenses.

How you can use a personal loan to meet medical emergencies?

Medical emergencies can be financially draining, especially if they require hospitalisation, surgeries or ongoing treatments. A personal loan can play a vital role in helping you meet these unforeseen expenses. Here’s how:

• Immediate funding: A personal loan requires minimal documentation and is processed quickly if you select the right lender. IndusInd Bank Personal Loan can provide quick access to funds without any paperwork and income proof requirements. This enables you and your family members to cover immediate medical expenses without delay.
  
  
• Preserving your savings: Your emergency fund and savings might take a hit in case of medical emergencies. Utilising a personal loan ensures that your savings and emergency funds remain intact. This can be especially important for long-term financial stability. You can continue to earn returns on them while personal loan funds can be used to sort out the emergency.
  
  
• Flexible repayment: A personal loan is quite flexible when it comes to selecting loan tenure and amount. With various tenure options available, you can select a repayment plan that suits your financial situation. This prevents undue strain on your monthly budget. An IndusInd Bank Online Personal Loan comes with flexible tenures ranging from 12 to 48 months. You are free to choose the tenure of your choice to ensure your finances are not strained.
  
  
• Comprehensive coverage: A personal loan can cover anything and everything relating to your medical expenses, including hospital bills, doctor fees, diagnostic tests, surgeries, medications and post-treatment care.
  
  
• Alternative to insurance gaps: Cashless claims can come as a relief but that might not be the case with everyone. In some cases, insurance coverage can fall short or claims can be delayed. In such situations, a personal loan can act as a bridge to cover the gap and ensure continuous treatment.

Points to consider when applying for a personal loan

Medical emergencies create a sense of urgency. While a personal loan can be a lifeline during medical emergencies, it is important to know the intricacies. Here are some of the significant aspects of a personal loan you should consider:

• Loan amount: Borrow only what is necessary to cover medical expenses. Avoid borrowing excess funds that could lead to unnecessary debt and interest costs.
  
  
• Interest rates and charges: Understand personal loan interest rates, processing fees and other charges associated with the personal loan. Being already burdened with medical costs, lower and affordable personal loan interest rates are crucial to keep costs under control. Look for lenders like IndusInd Bank, which offers a personal loan at interest rates starting from as low as 10.49% p.a. This makes borrowing affordable for you, allowing you to meet any kind of emergency.
  
  
• Repayment ability: Assess your ability to repay the loan comfortably within the chosen tenure. Defaulting on EMIs can negatively impact your credit score and financial well-being. You can use the IndusInd Bank Personal Loan EMI Calculator to determine the amount of EMI you will have to pay for different loan amounts, tenures and interest rates.
  
  
• Terms and conditions: Once you fulfil the personal loan eligibility criteria, read and understand the loan agreement’s terms and conditions before signing. Be aware of any prepayment penalties or hidden clauses.

In a nutshell

Medical emergencies are a reality that can disrupt even the best-laid financial plans. As quality healthcare can come at a significant cost, having a financial backup plan is essential. While health insurance is a cornerstone of preparedness, it may not cover all immediate expenses.

This is where a personal loan steps in, providing timely and flexible financial assistance. By understanding the features, benefits and potential pitfalls of a personal loan, you can make informed decisions to navigate medical emergencies with greater financial resilience. As with any financial decision, careful consideration and planning are key to ensuring that a personal loan serves as a lifeline rather than a burden.

Getting the right lender is crucial to ensure that medical emergencies don’t become a burden. IndusInd Bank provides affordable and instant personal loans with flexible terms and tenures, making them a lifeline in times of need. Apply now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.